FBR officials have said that through the latest ordinance, promulgated on 25th Mar’21 through a presidential order, the tax exemption available to IT services had been withdrawn. However, the IT firms have been granted a tax credit equal to 100% on their exports and other services. Under the exemption, tax authorities had no power to conduct examination of income. Through various amendments this exemption was extended till 30th Jun’25. Through Tax Laws (Second Amendment) Ordinance, 2021, the clause 133 of Second Schedule to the Income Tax Ordinance, 2001 has been deleted which means no tax exemption is available to IT exports.
27/3/2021